Does Afterpay make all of its money from late fees?

November 16, 2018 22:49

Updated

We make more money from people making payments on time than we do from missed payments or late fees.

Late payments are bad for our business because chasing them costs as much as we get back, and if you miss a payment, you can’t buy anything else with us until your account is settled. That is why we do everything possible to make sure you only buy what you can afford and avoid missing any payments including:

Our late fees are low and capped so they can’t ever go higher

We stop you purchasing once you’ve missed a payment so you can’t go deeper into debt

And we use proprietary technology to stop people purchasing too much – including half of all first-time purchasers and 30 per cent of all purchase attempts

Can you imagine a credit company stopping you from going further into debt or buying more because you missed a payment?

We know our approach works because 78% of our community have never incurred a late fee and 93% of purchases are paid for exactly on time.